The US Senate passes the Chips and Science Act, including $52B+ for US chipmakers plus tax credits to encourage investment; the bill now heads to the House
CNBCKevin Breuninger
Context & Ripple Effects
The Senate’s passage follows its earlier 64-34 vote to advance chip-production subsidies, turning a procedural step into a bill ready for House consideration. It also narrows the gap between the Senate’s technology-competitiveness agenda and the House’s earlier America Competes legislation.
The immediate significance is legislative: the House subsequently cleared the same CHIPS and Science Act, and the measure ultimately reached the president for signature.
First-order effects
The House becomes the decisive next institution, while US chipmakers gain a concrete prospect of more than $52 billion in federal support and investment tax credits rather than a Senate-only proposal.
The Senate has attached semiconductor manufacturing incentives to a broader science-and-technology package, raising the stakes of the House vote for the bill’s backers.
Second-order effects
House passage would move the package to the president and convert the debate from whether to authorize incentives into how US chipmakers can use them; related coverage shows that path ended with the bill being signed into law.
Companies seeking federal support would have to weigh the program’s conditions alongside the incentives: subsequent coverage says recipients are barred from expanding advanced-chip production in China, affecting firms including Intel and TSMC.
Third-order effects
The act points to a more interventionist US semiconductor policy in which public funding and tax incentives are used to address [[a:semiconductor-capacity-lag|semiconductor capacity lag]], not merely to fund research.
If this model persists, access to US incentives will increasingly shape chipmakers’ production-location choices and the competitive terms between US and China-linked manufacturing footprints.
The trend: US technology policy is moving toward tying industrial incentives to domestic semiconductor capacity and limits on overseas advanced-chip expansion.
Semiconductor chips are the building blocks of the modern economy - they power our smartphones and cars. And for years, manufacturing was sent overseas. For the sake of American jobs and our economy, we must make these at home. The CHIPS for America Act will get that done.
Senate Approves $280 Billion Bill to Boost U.S. Chip Making, Technology — Bipartisan backers say measure is needed to counter China, while GOP foes say embrace of industrial policy amounts to corporate welfare https://www.wsj.com/...
As our politics churn, @POTUS is quietly amassing a series of signficant wins that may or may not not benefit him in the short run but will benefit the country in the long run. This is one of them. https://www.washingtonpost.com/ ...
Passing this bill is a big deal with long term implications for our ability to compete in the global economy and strengthen our national security. Passage in the House should follow soon. Senate passes bill to subsidize U.S.-made semiconductor chips https://www.washingtonpost.com…
“No country's govt can afford to sit on the sidelines.” US senate passes a whopping $280B industrial policy bill (CHIPs & Science Act) to counter China. This will subsidize domestic semiconductor manufacturing, design & research in the US. Countries racing towards aatmanirbharta!…
It would be great if someone could get the leadership of those anticipating taxpayer handouts to publicly commit, in a recorded setting, to guarantee equal access to any foundry capacity built using said funds for all comers
While no piece of legislation is perfect, this bill helps America control our own destiny when it comes to high-end chip manufacturing. When it comes to chips, America is now in the game. https://www.cnbc.com/...
@WarpFact0r10 @jonmasters Intel made mistakes on 10nm and corrected. Intel will likely beat TSMC to GAAFETs. They also have a viable business model and the talent for developing advanced logic. The subsidies basically even the playing field compared to subsidies in other countrie…
This is described as a large scale foray into industrial policy, but it really just looks like a bunch of public subsidies to private companies (based, in this case, on a particular geopolitical consideration). Am I missing something? https://twitter.com/...
@jonmasters This is not a good idea. 1) what does equal mean? Does it mean equal access to capacity? What about shuttles and PDKs? What about the mask shop? History has shown that compelling de jure equality does not product de facto equality.
In 2022, the papers of record should link to the text of the bills they cover, especially historic ones. #HR4346 is the CHIPS & Science Act: https://t.co/i5pi45ukzQ https://t.co/Q0RvIaj65Q